PDD Holdings Inc. (NASDAQ:PDD) reported first-quarter results that came in below Wall Street expectations, sending the company’s shares down more than 5% in premarket trading despite continued revenue growth.
The e-commerce group posted adjusted earnings per ADS of RMB9.51 ($1.38), well below analyst consensus estimates of RMB16.77.
Shares of PDD Holdings declined 5.13% in premarket trading following the earnings release.
Quarterly revenue totaled RMB106.2 billion ($15.4 billion), missing analyst expectations of RMB109.82 billion, although still representing year-over-year growth of 11% from RMB95.7 billion in the same period last year.
Adjusted net income attributable to ordinary shareholders fell 17% year-over-year to RMB14.1 billion ($2.0 billion), compared with RMB16.9 billion in the first quarter of 2025.
The increase in revenue was mainly driven by strong growth in transaction services, where revenue rose 20% to RMB56.3 billion. Revenue from online marketing services and related activities increased more modestly to RMB49.9 billion from RMB48.7 billion a year earlier.
Operating expenses increased to RMB39.8 billion during the quarter, up from RMB38.6 billion in the prior-year period. Research and development spending also rose, climbing to RMB4.4 billion from RMB3.6 billion.
Despite the earnings miss, adjusted operating profit increased 15% year-over-year to RMB21.1 billion ($3.1 billion), compared with RMB18.3 billion in the same quarter last year.
“As we head into the next decade of our journey, supply chain investments will be our core strategic priority,” said Jiazhen Zhao, Co-Chairman and Co-Chief Executive Officer. “We will commit significant resources to building the first-party brand business, unlocking new opportunities for our supply chain partners, and driving exceptional value for our customers.”
PDD Holdings reported cash, cash equivalents and short-term investments totaling RMB436.1 billion ($63.2 billion) as of March 31, 2026, up from RMB422.3 billion at the end of 2025.
Net cash generated from operating activities also improved, rising to RMB16.4 billion ($2.4 billion) from RMB15.5 billion in the corresponding quarter last year.